The in-principle agreement will see SkyCity pay a penalty of A$21 million and commit to an independent Board and leadership
Casino operator SkyCity Entertainment Group has agreed a A$21 million settlement with the gambling regulator of South Australia.
The non-binding heads of agreement between SkyCity Adelaide and the Commissioner for Liquor and Gaming in South Australia aims to fully and finally resolve all outstanding regulatory matters arising from an independent review launched in July 2022.
That review was put on hold in February 2023 after the Australian financial regulator AUSTRAC commenced legal proceedings against SkyCity Adelaide in Federal Court, with the review resuming in June 2024 after SkyCity agreed to a $67 million settlement with AUSTRAC.
The review concluded in August 2025 with a decision to allow SkyCity Adelaide to retain its operating licence.
SkyCity said in a statement Friday that the non-binding heads of agreement will be followed by a formal binding tripartite agreement between the company, SkyCity Adelaide and the state of South Australia.
As part of the settlement, SkyCity will pay a fine of A$21 million in three instalments over the next two years, with the first A$7 million payment due within 28 days of the tripartite settlement deed.
SkyCity Adelaide has also committed to appointing a new board of directors comprised of a majority of non-executive directors by the end of 2027. This includes the appointment of a non-executive chairperson.
The Adelaide casino will be prohibited from delegating any functions or responsibilities to its parent company without prior approval from the South Australia gambling regulator.
The settlement will also require the casino to appoint an independent compliance auditor and phase out the use of cash for transactions of A$5,000 or more.
“Reaching this in-principle agreement is an important step for SkyCity and reflects the significant work our team has done over the past four years to transform our compliance culture, strengthen our governance, and earn back the trust of our regulators,” said Jason Walbridge, chief executive of SkyCity Entertainment Group.
“We accept the finding that led to this outcome and take seriously the obligations we have committed to. The structural changes for the Adelaide Casino – including an independent Adelaide board and locally accountable leadership – reflect a genuine commitment to operating as a responsible casino operator.”
Shares in SkyCity Entertainment Group (NZE:SKC) closed 4.31 per cent lower at NZ$0.56 per share in Wellington Monday.